How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55318
Experience:  29 years of experience as a tax, real estate, and business attorney.
Type Your Tax Question Here...
Richard is online now
A new question is answered every 9 seconds

If Ive loaned my parents money, do I have to pay taxes on

Resolved Question:

If I've loaned my parents money, do I have to pay taxes on that money now, or can I do it once they've paid me back?
Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

Good evening. You need not pay tax now or when they pay you back. Simply getting your money returned to you doesn't result in any increase in your wealth and is therefore not taxable. But, any interest they pay you on the money you must include in income in the year received.



I hope this has given you the guidance you were seeking. I wish you the best of luck!


If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 6 years ago.
What I'm trying to find out though is if I can delay having to pay taxes on income I earned last year, but then loaned to my parents.

i.e. If I earned 100K, and then loaned my parents 30K, can I only pay taxes on the left over 70K?

Does that make sense?
Expert:  Richard replied 6 years ago.
I understand what you are saying, but, no you cannot do that...a loan is neither an expense nor deductible. I'm sorry!
Richard and other Tax Specialists are ready to help you